Nationwide BS pulls out of interest-only market - Mortgages - News | moneyfacts.co.uk

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Nationwide BS pulls out of interest-only market

Nationwide BS pulls out of interest-only market

Category: Mortgages

Updated: 05/10/2012
First Published: 05/10/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Nationwide Building Society has confirmed it will no longer offer interest-only mortgages to new customers with effect from 11 October.

The news follows The Co-operative Bank's announcement in May that it will be pulling out of the interest-only market, whilst Santander, ING Direct, Leeds BS and Coventry BS have all reduced their maximum interest-only loan-to-values from 75% to 50%.

A spokesperson for Nationwide said: " We have decided that interest-only has become a niche product."

"We get few applications on an interest-only basis – less than 3 per cent – as borrowers want the certainty of a capital and interest mortgage. That is why we have decided to stop offering interest-only mortgages to new borrowers."

What Next?

Find the best mortgage rate - Compare best selling mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

 
 
Close